PARSONS CORP — Call Transcript 2025

Morning, everyone. Thanks so much for joining us. Really happy to have Parsons here to take us through the story. We have the company CEO, Carey Smith. Carey, thanks for joining us today. Thanks. Great to be back, Brian. We're going to do fireside, as you can probably tell from our setup here. Please have some questions loaded up, though, if there's any time at the end. Carey, why don't you just level set us to the story? Certainly. So Parsons, we report in two segments. We're about 51% Federal Solutions, 49% Critical Infrastructure. We have six end markets: Cyber and Electronic Warfare, where we're one of the leaders in offensive cyber, and also the ability to converge Cyber and Electronic Warfare in areas like non-kinetic effects. That business comprises 20% of the Parsons revenue. We're involved in Space and Missile Defense. We have been the system engineering and integration contractor for the Missile Defense Agency for four decades. An important role is you start to look forward to the Golden Dome, the money that's in the One Big Beautiful Bill. In the space domain, we provide ground systems. We've done over 170 different ground systems. We developed a unique solution where we can actually commercially operate large satellite vehicles, and we do assured position, navigation, and timing. We're also involved in space domain awareness, and we just received the Space Icon Award, in fact, this week for the work that we've done with the Department of Commerce. And that comprises about 10% of our business. We're in Critical Infrastructure Protection. That's about another 10% of the company's revenue. We're involved in counter-unmanned aircraft systems, number one provider for the Department of State. We also do electronic security, physical security systems, number one with State, number one with the Army, and number three with the Air Force. Transportation, 28% of the company's revenue. We're involved in over 450 airports, 450 rail and transit projects. We've done over 17,000 mi of road and highway work across six continents. And we also do intelligent transportation systems. We're just awarded our first deployment in the Middle East for that area. We do about 15% of our business in Water and Environment. Just acquired a company, which we could talk about later, Applied Sciences, which is involved in water remediation efforts in Florida, and then the final area would be Urban Development. That comprises about 13% of the company's revenue. Most of the work that we do there is over in the Middle East, where we're involved in almost every major project going on today in Saudi Arabia, and I would also highlight we are the number one program manager in the world, as ranked by Engineering News-Record. Well, that's quite a resume. Hopefully, everyone got that down. Carey, the biggest driver after two phenomenal years in 2023 and 2024, the biggest driver of the business this year was the confidential contract. It caused growth to turn negative after 20%+ growth in the prior two years. Can you remind the audience about the dollar and percentage headwinds that that caused? Maybe talk about growth excluding that contract and really how you win that contract anniversaries and the company way back to an as-reported organic number. Yes. So first, I'd say we're really excited that for the last three years, excluding the confidential contract, we have been the industry organic growth leader in both of our segments. This year, anticipating 14% total growth at the company level, 9% organic growth. And then we've been very clear going into 2026 that we expect mid-single digits or better. So still extremely strong growth across the company, as we've been demonstrating. The confidential contract was about $355 million this year, and that's starting to diminish. It's going to be about $20 million in the fourth quarter, and then next year for the first two months, maybe $10 million-$15 million, and it will end in February. Fantastic. Let's pivot to another contract with the FAA. Recent contract award to a competitor of yours. You've historically had a sizable footprint at the FAA. Would you maybe discuss what happens with your existing contracts from a scope, duration, and growth perspective? And are there new opportunities that you could be part of this air traffic control network in a different capacity than lead integrator? And if so, maybe how should we think about the timing and sizing of that? Yes. So first, I'd say we've been happy to support the FAA as our customer for five decades. We've been on the Technical Support Service Contract for the last 24 years, since 2001, and we've had excellent past performance on that contract. So when you look at the scope of the brand new air traffic control system, there are, in essence, two parts. There's an integrator part, but there's also an implementer part. So if you think implementer, that's the role that we have played with the FAA in the past. We anticipate growth in that area as a result of this contract, when that would be new work for us. So we're currently present in over 600 locations. We do things like site surveys. We do installation work. We do all the logistics. We do safety work. We're also involved in fire protection, but everything that goes on at all those facility sites. That will grow as a result of the brand new air traffic control systems. As an example, there will be the purchase of 619 radar systems. Those are going to have to get installed at each of the facilities. So we look forward to continuing to support the FAA in this critical mission and making sure that our national airspace system remains safe for the traveling public. How would we think about the contract flow through to Parsons? Does it require new vehicles, or do you have the existing ceiling, or? Yes. So we were awarded a $1.8 billion contract in April of 2023. That contract runs for 10 years until April of 2033. So they can just continue to award work on that existing vehicle. Fantastic. I should comment we have $1 billion ceiling remaining. $1 billion left. Perfect. I want to talk about some of the other growth areas. You mentioned a lot as you were introducing the company to folks. Can you maybe help us what your top four growth areas for 2026 are and what the timing of that looks like and how investors should be looking at the business going forward? Yes. So I'd have to say the fastest growing area would be our critical infrastructure business. And I'm going to say in totality, whether it's within the transportation sector, the Water and Environment sector, or the Urban Development sector, both infrastructure in North America as well as infrastructure in the Middle East are going to be double-digit growers this year. The Middle East, this is their fourth consecutive year of double-digit growth. And the nice thing for that organization is that we have long-term tailwinds. So within the U.S., the Infrastructure Investment and Jobs Act was passed in November 2021, but that's not going to hit its peak until 2028. Then you have a six to eight-year tail after that. In parallel, you're going to have the new five-year Surface Transportation Reauthorization Bill ramping up. And then if you look at the Middle East, we like the $1.2 trillion in the U.S. We're expecting $1.5 trillion in the Middle East. So particularly in Saudi, as we prepare for the 2030 Expo and for the 2034 World Cup, we're going to see tremendous tailwinds. I would say the number two priority would be probably border security. Border security received about $160 billion within the reconciliation bill. Parsons has been involved in border security programs all over the world. We do work with Defense Threat Reduction Agency in countries like Jordan. We've done Armenia. We've done Georgia. We've done Lebanon. We also do work with the Department of Energy for the Counter-Nuclear Smuggling Detection and Deterrence. That's a $1 billion ceiling contract, and there's only two awardees. And we've also done work at land ports of entry and along the southern border. So that would probably be my second priority. Third, I would say would be the Golden Dome for America, in fact, in North America, not just the U.S., but also with Canada, where we have a big presence. As the Missile Defense Agency system engineering integration contractor, the big part of the Golden Dome effort initially is going to be on that integration piece. So we would anticipate use on our vehicle. Once again, we have a $1 billion ceiling remaining, and that vehicle runs until January 2029. We also are involved in non-kinetic effects, as I mentioned earlier, Cyber and Electronic Warfare. How do you take out a missile without using missile-to-missile system? We're participating on some of the space-based interceptor activity, and we're looking at the battle management, command, and control growth as well. Fourth area would be cyber. The National Security Strategy was just released by the Department of War, and one of the biggest effects, challenges, is still deterrence of China. That's really how we've purpose-built our federal company: how do we deter and outpace near-peer threats through cyber techniques, electronic warfare, signals intelligence, and information operations, and offensive cyber being a critical component of that, and it's hard, Brian, to be honest with you, to stop at force. I'm so excited about where the company is. Don't let me stop you. You can go one deeper if you want. We have time for that. I would say another growth area that we're excited about would be PFOS/PFAS, emerging contaminant elimination. We see that as a $40 billion addressable market for the company out of a total market size of $220 billion. We've developed a technology. It's called the Hot ISCO technology that actually destroys the PFAS molecule on spot. That has now been patented in Canada and in the United States, and we've had our first deployments of the technology, and then I would highlight rebuild of Syria, Ukraine, and eventually Israel, Gaza, Syria being the first. Parsons is the company that did the Chemical Weapons Elimination, phase I. There's going to be a phase II of that, and then there will be the rebuild of Syria, and we anticipate that the Gulf Consortium countries are going to be the ones that are going to pay for that rebuild. Obviously, with our extensive presence in the Middle East, that helps. And then two more quickly, but I would say Army munitions is another big area for us. We're currently present at Radford and Holston. Those are two of the five top Army ammunition plants within the United States. We've won four of four projects there, so expecting growth. And then the INDOPACOM region, the Pacific Deterrence Initiative was initially set up for $18 billion. Within the reconciliation bill, there's an additional $12 billion. We've been on that region for over three decades. So we do both infrastructure work as well as cyber, electronic warfare, and signals intelligence. So again, exciting time for the company with a lot of growth factors. If I could just maybe pull on just one of the common threads here. When I was in D.C. a few weeks ago, a lot about border security, encounter UAS and that whole construct. And then just last week, the SHIELD contract was awarded for Golden Dome. Can you maybe help us understand how that matriculates through to contract awards and activity and how people should think about the timing for some of these things? Yeah. I would say in Golden Dome first, again, I think there's going to be more systems procurement. So if you think about that, it's Patriots, ground-based interceptors, and a lot of integration going on. And then there's going to be an immediate focus sort of on local area defense. I would equate the local area defense to our Air Base Air Defense program that we have established in Europe, which is how we're protecting air force bases. It's kind of similar to how you might come in and protect a city from an architecture perspective. SHIELD was very broad. It has a $150 billion ceiling, over 1,000 awardees. It was more kind of broad-based capabilities. But I believe what's going to happen immediately is using existing contracts and getting existing work out. Makes a lot of sense. I want to zoom into the President with a near-term question here. On the last call, you talked about some disruption from the government shutdown, but at the same time, you still guided an acceleration in your fourth quarter here coming up. Can you walk us through the components that are driving the sequential acceleration in your Federal Solutions segment and maybe if the length of the shutdown is causing that recovery to be a bit more elongated? Yes. So first, again, 51% of our company doesn't fall under the federal government. We're only talking about the 49% that does. But I would say the growth that we were anticipating is sort of in three areas. The first one is the air base air defense contract that I just mentioned. We've been awarded some new task orders on that vehicle, so we're seeing growth there. Our Federal Aviation Administration contract, TSSC-5, without the brand new air traffic control system, was also accelerating throughout the fourth quarter. And then the last one is we were awaiting an award, which we received a success memo on. This one's kind of exciting because there were 100 offers on other transaction agreement. It was necked down to three prototypes, and we were awarded the Joint Cyber Hunt Kit program. We're awaiting the LRIP contract, but that's a $500 million over a three-year product sale, so it's higher margins and it's accretive. So those are the critical elements within federal. As far as shutdown, we are glad it's over, and hopefully we don't have another one as we go into January 30th. We need to get the last nine bills passed. But I would say people are coming back to the office. It is a little bit slow still in terms of contracting actions, and we're very focused on collecting our cash. Right. We typically see cash slow down at this time of year for those situations. Let's maybe zoom now out, take the counterbalance to that question, and zoom out longer-term view. Remind the group of really what your growth algorithm is, organic versus inorganic, how much margin leverage you can realize as you scale up bigger, and really what the primary levers are to expand margins towards the top end of that peer group, which is 11% or 12% on an EBITDA basis. Yeah. So on the organic growth first, I would say, once again, we've been for three years consecutively the industry leader in organic growth in both of our segments, excluding the confidential contract. We have been very consistent as we go into 2026. We're going to grow mid-single digits or better. That doesn't include any big game changer opportunities that we might be awarded. That is strictly core business delivering, executing, as we have consistently done. Inorganically, we've bought 16 companies since 2017. This year, we acquired three companies, TRS Group in the first quarter that's focused on PFOS/PFAS and thermal remediation. We acquired Chesapeake Technology International, enhanced our cyber electronic warfare signal intelligence, but most importantly, has a great presence in the INDOPACOM region, also a great presence with Special Operations Command. Then most recently, Applied Sciences Consulting, and they're involved in water remediation efforts and heavy presence within Florida on resiliency. We expect to continue to do more M&A, although I will say with the stock dislocation, we are going to focus on share repurchases right now as well. But we have an active M&A pipeline, expect to be able to drive more organic growth. You can see us doing between two to four acquisitions in any given year. Margins. On margins, I would say our federal margins are kind of about where we would expect them to be based on a 60/40 split, which is cost reimbursable to fixed price T&M mix within there. Where we will get margin growth on the federal side of the house is going to be through additional product sales, such as the earlier one that I mentioned on Joint Cyber Hunt Kit or the work that we're doing on assured position, navigation, and timing through our Globalstar partnership that we have. We would also get a lift through M&A because when we buy companies, we're buying companies that have greater than 10% EBITDA margin and also through operating leverage, where we've been able to control our costs as our revenues increase. Similarly, I'd say on the critical infrastructure side of the house, but I would add on the infrastructure side of the house, demand is so much greater than supply. So as you start to look at some of our new programs coming in, we have been able to get margin lift. We have lifted our margins overall as a company 50 basis points last year and additional 50 basis points this year, and really happy with the critical infrastructure business, which has delivered over 10% margins for three consecutive quarters through outstanding performance execution. You've done a really nice job on that critical infrastructure piece. Maybe let's pivot to that business a little bit, not only the margin execution, but the growth rate's been mid-teens. You've 20 consecutive book-to-bills greater than one. Maybe talk about the durability of this cycle. It sounds like it's a very elongated cycle with years in front of it still. And then maybe where you're seeing the biggest pockets of activity, whether it's transportation, water, and then maybe give us a regional flavor for where things are coming, either Middle East or North America or how you're looking at it. Yes. So I'd say first at the company level, we're really proud of the fact that we've been greater than 1.0, trailing 12-month book to bill since we IPO'd back in May of 2019. And as you point out, 20 consecutive quarters greater than 1.0 within critical infrastructure. Demand is really across the board. Additionally, you know, as we saw a shift within the United States back to what I'm going to call hard infrastructure, away from areas like climate change, electrification, broadband, where Parsons does not play, back to a refocus on roads and highways, airports, bridges. Those are the areas that we're involved in, rail and transit. So that kind of plays to our strength, and that's where the money has been going. In the Middle East, we're going to see a lot of long-tailwinds. The important thing right now is to get ready for the 2030 Expo in Saudi, the 2034 World Cup that's going to occur. We've been heavily focused on programs that are around Riyadh because they're going to be on the world stage, and those programs have to get done first. So as any reprioritization, whether it occur in Saudi, you're still going to deliver on those programs. So if you think about Diriyah Gate, restoration of Saudi's history, King Salman Park, five times the size of Central Park, Qiddiya, the world's largest entertainment city. We were just awarded King Salman International Airport, where we're going to have 108 million passengers by 2030, same size as Atlanta, the world's busiest airport, 150 million passengers by 2050, will be the world's largest airport. We did the Metro project, which is still underway, quite a success done in a very short period of time. We were just awarded the traffic management that's around Riyadh. So it's our first deployment of our advanced traffic management system within the Middle East, quite exciting. So I would say that's the significant growth we're seeing there. But not to leave out the UAE and Qatar because we're growing double digits within all three countries. In the UAE, we're seeing a lot of development. There are a lot of people moving there. So we're actually building manmade islands, you know, for people to live on and designing a lot of new mixed-use development areas. And then within Qatar, we've been very busy, not just in Doha, but also in the city of Lusail, which is going to be focusing more on tourism and entertainment. We've diversified within the Middle East too. So, you know, traditionally, we've done transportation projects and Urban Development. We were awarded a project with the Ministry of Defense. It's a critical infrastructure project within Saudi. We also were awarded a border security project within Saudi Arabia, again, strengthening our border security credentials. And then finally, we were awarded a project in tourism and hospitality to convert some palaces to hotels. A lot going on in the Middle East, definitely. Let's maybe, I think you teased it a little bit, but let's talk about capital allocation. I think your leverage is about 1.4 x. You've done kind of a few deals each year, two to four or so. They've been reasonably sized. How are we thinking about, you mentioned the stock dislocation. How are we looking at maybe two things? One, what the pipeline looks like from an M&A perspective. Is there a leaning towards one segment or the other where you would do more deals? And then third, how are you now balancing a potential stock buyback going forward? Yes. I'll take the second part first. We are authorized by the board for $250 million. As of the end of the third quarter, we had $185 million remaining in share repurchase. We do plan to be more active as we go into the fourth quarter, given the stock dislocation. On the second question, we have an excellent pipeline. I was hoping to close four deals this year, but stay tuned. And I would say we've got opportunities on both the federal and the critical infrastructure side of the house. Four of our last six deals were on the critical infrastructure side of the house, but I still like a lot of the federal deals because they're high technology, and we can take that technology and we can apply it across the business. So you can expect to see us likely do a deal that is still in kind of that cyber EW signals and intelligence area that expands our presence with the intelligence community. Great areas to be in. Carey, you know this is your moment to shine here, the drop-the-mic moment. So go ahead, no follow-up from me. Talk directly to investors here and on the internet and tell them why they should consider Parsons as an investment. But I'll miss the follow-up for you. So I would say why you should consider Parsons as an investment. Again, we have been the leading industry organic growth driver for the last three years, excluding the confidential contract. That's in both segments. We have strong tailwinds across the business. I highlighted all of our growth areas within North America and the federal side with the One Big Beautiful Reconciliation Bill, where we are very much aligned to all the elements that got funded there, whether it's border security, Golden Dome for America, INDOPACOM, Army munitions, et cetera. Within the infrastructure side of the house in North America, very well aligned to the hard infrastructure where the money's going to be spent under the IIJA, as well as the next five-year Surface Transportation Reauthorization Bill. Within the Middle East, I just talked about it, but very exciting times there. That's going to go on for decades of growth. Really proud of our presence that we've had over there for 65 years, a 50-year partnership with our Saudi Arabia partner. Margin expansion, we've been consistent, you know, 50 basis points last year, 50 basis points this year, another 10-20 anticipated as we go into next year. Book to bill, the company over 1.0, trailing 12 months since IPO, critical infrastructure greater than 1.0, 20 consecutive quarters. Biggest pipeline we've ever had in the company, $58 billion. We've moved up the value chain, as we said, as a solutions integrator. We're differentiating with software. We're in a position now that we can bid prime and win larger projects. Then I'd highlight our consistent cash flow over the last couple of years, 115%-120%. So very consistent and great capital deployment. I think M&A has really helped us move up that value chain and definitely transformed our company. So exciting time at Parsons. Sounds great. Well said, Carey. Thank you so much for joining us today. Thanks. And thanks everyone out there for your interest. We do have time for a question or two if anyone has one in the audience. Yeah, please. Can I just ask about, you mentioned about the PFAS. Can you just give a bit more color of maybe the opportunity there and the role you can play in it, and some of your peers have spoken about this. It's maybe a case of a political decision in terms of a fund needing to be raised because it's such an expensive problem, and how do you see that? Sure. So within PFOS/PFAS, we've had a research laboratory in Syracuse, New York, for three decades that we've been focused on, you know, improving. I'm going to say, quality of water, quality of soil. We hold several patents within the PFOS/PFAS area. The most important one is the Hot ISCO technology, which we have deployed. It basically breaks the PFAS molecule on site without requiring incineration. We see this as a $40 billion addressable market for Parsons out of a total $220 billion market. On the critical infrastructure side of the house, we will sell to airports, we'll sell to industrial customers, and also water customers. And then on the federal side of the house, we'll sell to the Federal Aviation Administration and the Department of Defense. On both sides of the house, we already have contracts in place, master service agreements, or indefinite delivery, indefinite quantity vehicles. We're involved in every aspect of the life cycle. So we do investigations. We've done over 2,000 investigations and over 7,000 point-of-use investigations. Then we can come in and we can do the remediation and treatment and also the follow-on monitoring and support. The federal MCO levels have not been changed. They're still at a consistent level. What has happened is a timeline for implementation from the federal government has been stretched. We always felt that it was going to be elongated. So we always indicated 2032 is our expectation for a peak in that market. In addition to the federal, you also have 34 states that have their own regulations. So we see this as an exciting area for the company. Thank you. Great. Carey, thanks so much. Thanks, Brian. Thanks so much.

Speaker 3: Morning, everyone. Thanks so much for joining us. Really happy to have Parsons here to take us through the story. We have the company CEO, Carey Smith. Carey, thanks for joining us today. Morning, everyone. morning everyone Thanks so much for joining us. thanks so much for joining us Really happy to have Parsons here to take us through the story. really happy to have parsons here to take us through the story We have the company CEO, Carey Smith. we have the company ceo carey smith Carey, thanks for joining us today. carey thanks for joining us today

Speaker 1: Thanks. Great to be back, Brian. Thanks. thanks Great to be back, Brian. great to be back brian

Speaker 3: We're going to do fireside, as you can probably tell from our setup here. Please have some questions loaded up, though, if there's any time at the end. Carey, why don't you just level set us to the story? We're going to do fireside, as you can probably tell from our setup here. we're going to do fireside as you can probably tell from our setup here Please have some questions loaded up, though, if there's any time at the end. please have some questions loaded up though if there's any time at the end Carey, why don't you just level set us to the story? carey why don't you just level set us to the story

Speaker 1: Certainly. So Parsons, we report in two segments. We're about 51% Federal Solutions, 49% Critical Infrastructure. We have six end markets: Cyber and Electronic Warfare, where we're one of the leaders in offensive cyber, and also the ability to converge Cyber and Electronic Warfare in areas like non-kinetic effects. That business comprises 20% of the Parsons revenue. We're involved in Space and Missile Defense. We have been the system engineering and integration contractor for the Missile Defense Agency for four decades. An important role is you start to look forward to the Golden Dome, the money that's in the One Big Beautiful Bill. In the space domain, we provide ground systems. We've done over 170 different ground systems. We developed a unique solution where we can actually commercially operate large satellite vehicles, and we do assured position, navigation, and timing. Certainly. certainly So Parsons, we report in two segments. so parsons we report in two segments We're about 51% Federal Solutions, 49% Critical Infrastructure. we're about 51% federal solutions 49% critical infrastructure We have six end markets: Cyber and Electronic Warfare, where we're one of the leaders in offensive cyber, and also the ability to converge Cyber and Electronic Warfare in areas like non-kinetic effects. we have six end markets cyber and electronic warfare where we're one of the leaders in offensive cyber and also the ability to converge cyber and electronic warfare in areas like non-kinetic effects That business comprises 20% of the Parsons revenue. that business comprises 20% of the parsons revenue We're involved in Space and Missile Defense. we're involved in space and missile defense We have been the system engineering and integration contractor for the Missile Defense Agency for four decades. we have been the system engineering and integration contractor for the missile defense agency for four decades An important role is you start to look forward to the Golden Dome, the money that's in the One Big Beautiful Bill. an important role is you start to look forward to the golden dome the money that's in the one big beautiful bill In the space domain, we provide ground systems. in the space domain we provide ground systems We've done over 170 different ground systems. we've done over 170 different ground systems We developed a unique solution where we can actually commercially operate large satellite vehicles, and we do assured position, navigation, and timing. we developed a unique solution where we can actually commercially operate large satellite vehicles and we do assured position navigation and timing We're also involved in space domain awareness, and we just received the Space Icon Award, in fact, this week for the work that we've done with the Department of Commerce. And that comprises about 10% of our business. We're in Critical Infrastructure Protection. That's about another 10% of the company's revenue. We're involved in counter-unmanned aircraft systems, number one provider for the Department of State. We also do electronic security, physical security systems, number one with State, number one with the Army, and number three with the Air Force. Transportation, 28% of the company's revenue. We're involved in over 450 airports, 450 rail and transit projects. We've done over 17,000 mi of road and highway work across six continents. And we also do intelligent transportation systems. We're just awarded our first deployment in the Middle East for that area. We do about 15% of our business in Water and Environment. We're also involved in space domain awareness, and we just received the Space Icon Award, in fact, this week for the work that we've done with the Department of Commerce. we're also involved in space domain awareness and we just received the space icon award in fact this week for the work that we've done with the department of commerce And that comprises about 10% of our business. and that comprises about 10% of our business We're in Critical Infrastructure Protection. we're in critical infrastructure protection That's about another 10% of the company's revenue. that's about another 10% of the company's revenue We're involved in counter-u nmanned aircraft systems, number one provider for the Department of State. we're involved in counter-u nmanned aircraft systems number one provider for the department of state We also do electronic security, physical security systems, number one with State, number one with the Army, and number three with the Air Force. we also do electronic security physical security systems number one with state number one with the army and number three with the air force Transportation, 28% of the company's revenue. transportation 28% of the company's revenue We're involved in over 450 airports, 450 rail and transit projects. we're involved in over 450 airports 450 rail and transit projects We've done over 17,000 mi of road and highway work across six continents. we've done over 17,000 mi of road and highway work across six continents And we also do intelligent transportation systems. and we also do intelligent transportation systems We're just awarded our first deployment in the Middle East for that area. we're just awarded our first deployment in the middle east for that area We do about 15% of our business in Water and Environment. we do about 15% of our business in water and environment Just acquired a company, which we could talk about later, Applied Sciences, which is involved in water remediation efforts in Florida, and then the final area would be Urban Development. That comprises about 13% of the company's revenue. Most of the work that we do there is over in the Middle East, where we're involved in almost every major project going on today in Saudi Arabia, and I would also highlight we are the number one program manager in the world, as ranked by Engineering News-Record. Just acquired a company, which we could talk about later, Applied Sciences, which is involved in water remediation efforts in Florida, and then the final area would be Urban Development. just acquired a company which we could talk about later applied sciences which is involved in water remediation efforts in florida and then the final area would be urban development That comprises about 13% of the company's revenue. that comprises about 13% of the company's revenue Most of the work that we do there is over in the Middle East, where we're involved in almost every major project going on today in Saudi Arabia, and I would also highlight we are the number one program manager in the world, as ranked by Engineering News-Record. most of the work that we do there is over in the middle east where we're involved in almost every major project going on today in saudi arabia and i would also highlight we are the number one program manager in the world as ranked by engineering news-record

Speaker 3: Well, that's quite a resume. Hopefully, everyone got that down. Carey, the biggest driver after two phenomenal years in 2023 and 2024, the biggest driver of the business this year was the confidential contract. It caused growth to turn negative after 20%+ growth in the prior two years. Can you remind the audience about the dollar and percentage headwinds that that caused? Maybe talk about growth excluding that contract and really how you win that contract anniversaries and the company way back to an as-reported organic number. Well, that's quite a resume. well that's quite a resume Hopefully, everyone got that down. hopefully everyone got that down Carey, the biggest driver after two phenomenal years in 2023 and 2024, the biggest driver of the business this year was the confidential contract. carey the biggest driver after two phenomenal years in 2023 and 2024 the biggest driver of the business this year was the confidential contract It caused growth to turn negative after 20%+ growth in the prior two years. it caused growth to turn negative after 20%+ growth in the prior two years Can you remind the audience about the dollar and percentage headwinds that that caused? can you remind the audience about the dollar and percentage headwinds that that caused Maybe talk about growth excluding that contract and really how you win that contract anniversaries and the company way back to an as-reported organic number. maybe talk about growth excluding that contract and really how you win that contract anniversaries and the company way back to an as-reported organic number

Speaker 1: Yes. So first, I'd say we're really excited that for the last three years, excluding the confidential contract, we have been the industry organic growth leader in both of our segments. This year, anticipating 14% total growth at the company level, 9% organic growth. And then we've been very clear going into 2026 that we expect mid-single digits or better. So still extremely strong growth across the company, as we've been demonstrating. The confidential contract was about $355 million this year, and that's starting to diminish. It's going to be about $20 million in the fourth quarter, and then next year for the first two months, maybe $10 million-$15 million, and it will end in February. Yes. yes So first, I'd say we're really excited that for the last three years, excluding the confidential contract, we have been the industry organic growth leader in both of our segments. so first i'd say we're really excited that for the last three years excluding the confidential contract we have been the industry organic growth leader in both of our segments This year, anticipating 14% total growth at the company level, 9% organic growth. this year anticipating 14% total growth at the company level 9% organic growth And then we've been very clear going into 2026 that we expect mid-single digits or better. and then we've been very clear going into 2026 that we expect mid-single digits or better So still extremely strong growth across the company, as we've been demonstrating. so still extremely strong growth across the company as we've been demonstrating The confidential contract was about $355 million this year, and that's starting to diminish. the confidential contract was about $355 million this year and that's starting to diminish It's going to be about $20 million in the fourth quarter, and then next year for the first two months, maybe $10 million-$15 million, and it will end in February. it's going to be about $20 million in the fourth quarter and then next year for the first two months maybe $10 million-$15 million and it will end in february

Speaker 3: Fantastic. Let's pivot to another contract with the FAA. Recent contract award to a competitor of yours. You've historically had a sizable footprint at the FAA. Would you maybe discuss what happens with your existing contracts from a scope, duration, and growth perspective? And are there new opportunities that you could be part of this air traffic control network in a different capacity than lead integrator? And if so, maybe how should we think about the timing and sizing of that? Fantastic. fantastic Let's pivot to another contract with the FAA. let's pivot to another contract with the faa Recent contract award to a competitor of yours. recent contract award to a competitor of yours You've historically had a sizable footprint at the FAA. you've historically had a sizable footprint at the faa Would you maybe discuss what happens with your existing contracts from a scope, duration, and growth perspective? would you maybe discuss what happens with your existing contracts from a scope duration and growth perspective And are there new opportunities that you could be part of this air traffic control network in a different capacity than lead integrator? and are there new opportunities that you could be part of this air traffic control network in a different capacity than lead integrator And if so, maybe how should we think about the timing and sizing of that? and if so maybe how should we think about the timing and sizing of that

Speaker 1: Yes. So first, I'd say we've been happy to support the FAA as our customer for five decades. We've been on the Technical Support Service Contract for the last 24 years, since 2001, and we've had excellent past performance on that contract. So when you look at the scope of the brand new air traffic control system, there are, in essence, two parts. There's an integrator part, but there's also an implementer part. So if you think implementer, that's the role that we have played with the FAA in the past. We anticipate growth in that area as a result of this contract, when that would be new work for us. So we're currently present in over 600 locations. We do things like site surveys. We do installation work. We do all the logistics. We do safety work. Yes. yes So first, I'd say we've been happy to support the FAA as our customer for five decades. so first i'd say we've been happy to support the faa as our customer for five decades We've been on the Technical Support Service Contract for the last 24 years, since 2001, and we've had excellent past performance on that contract. we've been on the technical support service contract for the last 24 years since 2001 and we've had excellent past performance on that contract So when you look at the scope of the brand new air traffic control system, there are, in essence, two parts. so when you look at the scope of the brand new air traffic control system there are in essence two parts There's an integrator part, but there's also an implementer part. there's an integrator part but there's also an implementer part So if you think implementer, that's the role that we have played with the FAA in the past. so if you think implementer that's the role that we have played with the faa in the past We anticipate growth in that area as a result of this contract, when that would be new work for us. we anticipate growth in that area as a result of this contract when that would be new work for us So we're currently present in over 600 locations. so we're currently present in over 600 locations We do things like site surveys. we do things like site surveys We do installation work. we do installation work We do all the logistics. we do all the logistics We do safety work. we do safety work We're also involved in fire protection, but everything that goes on at all those facility sites. That will grow as a result of the brand new air traffic control systems. As an example, there will be the purchase of 619 radar systems. Those are going to have to get installed at each of the facilities. So we look forward to continuing to support the FAA in this critical mission and making sure that our national airspace system remains safe for the traveling public. We're also involved in fire protection, but everything that goes on at all those facility sites. we're also involved in fire protection but everything that goes on at all those facility sites That will grow as a result of the brand new air traffic control systems. that will grow as a result of the brand new air traffic control systems As an example, there will be the purchase of 619 radar systems. as an example there will be the purchase of 619 radar systems Those are going to have to get installed at each of the facilities. those are going to have to get installed at each of the facilities So we look forward to continuing to support the FAA in this critical mission and making sure that our national airspace system remains safe for the traveling public. so we look forward to continuing to support the faa in this critical mission and making sure that our national airspace system remains safe for the traveling public

Speaker 3: How would we think about the contract flow through to Parsons? Does it require new vehicles, or do you have the existing ceiling, or? How would we think about the contract flow through to Parsons? how would we think about the contract flow through to parsons Does it require new vehicles, or do you have the existing ceiling, or? does it require new vehicles or do you have the existing ceiling or

Speaker 1: Yes. So we were awarded a $1.8 billion contract in April of 2023. That contract runs for 10 years until April of 2033. So they can just continue to award work on that existing vehicle. Yes. yes So we were awarded a $1.8 billion contract in April of 2023. so we were awarded a $1.8 billion contract in april of 2023 That contract runs for 10 years until April of 2033. that contract runs for 10 years until april of 2033 So they can just continue to award work on that existing vehicle. so they can just continue to award work on that existing vehicle

Speaker 3: Fantastic. Fantastic. fantastic

Speaker 1: I should comment we have $1 billion ceiling remaining. I should comment we have $1 billion ceiling remaining. i should comment we have $1 billion ceiling remaining

Speaker 3: $1 billion left. Perfect. I want to talk about some of the other growth areas. You mentioned a lot as you were introducing the company to folks. Can you maybe help us what your top four growth areas for 2026 are and what the timing of that looks like and how investors should be looking at the business going forward? $1 billion left. $1 billion left Perfect. perfect I want to talk about some of the other growth areas. i want to talk about some of the other growth areas You mentioned a lot as you were introducing the company to folks. you mentioned a lot as you were introducing the company to folks Can you maybe help us what your top four growth areas for 2026 are and what the timing of that looks like and how investors should be looking at the business going forward? can you maybe help us what your top four growth areas for 2026 are and what the timing of that looks like and how investors should be looking at the business going forward

Speaker 1: Yes. So I'd have to say the fastest growing area would be our critical infrastructure business. And I'm going to say in totality, whether it's within the transportation sector, the Water and Environment sector, or the Urban Development sector, both infrastructure in North America as well as infrastructure in the Middle East are going to be double-digit growers this year. The Middle East, this is their fourth consecutive year of double-digit growth. And the nice thing for that organization is that we have long-term tailwinds. So within the U.S., the Infrastructure Investment and Jobs Act was passed in November 2021, but that's not going to hit its peak until 2028. Then you have a six to eight-year tail after that. In parallel, you're going to have the new five-year Surface Transportation Reauthorization Bill ramping up. Yes. yes So I'd have to say the fastest growing area would be our critical infrastructure business. so i'd have to say the fastest growing area would be our critical infrastructure business And I'm going to say in totality, whether it's within the transportation sector, the Water and Environment sector, or the Urban Development sector, both infrastructure in North America as well as infrastructure in the Middle East are going to be double-digit growers this year. and i'm going to say in totality whether it's within the transportation sector the water and environment sector or the urban development sector both infrastructure in north america as well as infrastructure in the middle east are going to be double-digit growers this year The Middle East, this is their fourth consecutive year of double-digit growth. the middle east this is their fourth consecutive year of double-digit growth And the nice thing for that organization is that we have long-term tailwinds. and the nice thing for that organization is that we have long-term tailwinds So within the U.S., the Infrastructure Investment and Jobs Act was passed in November 2021, but that's not going to hit its peak until 2028. so within the u.s the infrastructure investment and jobs act was passed in november 2021 but that's not going to hit its peak until 2028 Then you have a six to eight-year tail after that. then you have a six to eight-year tail after that In parallel, you're going to have the new five-year Surface Transportation Reauthorization Bill ramping up. in parallel you're going to have the new five-year surface transportation reauthorization bill ramping up And then if you look at the Middle East, we like the $1.2 trillion in the U.S. We're expecting $1.5 trillion in the Middle East. So particularly in Saudi, as we prepare for the 2030 Expo and for the 2034 World Cup, we're going to see tremendous tailwinds. I would say the number two priority would be probably border security. Border security received about $160 billion within the reconciliation bill. Parsons has been involved in border security programs all over the world. We do work with Defense Threat Reduction Agency in countries like Jordan. We've done Armenia. We've done Georgia. We've done Lebanon. We also do work with the Department of Energy for the Counter-Nuclear Smuggling Detection and Deterrence. That's a $1 billion ceiling contract, and there's only two awardees. And we've also done work at land ports of entry and along the southern border. And then if you look at the Middle East, we like the $1.2 trillion in the U.S. and then if you look at the middle east we like the $1.2 trillion in the u.s We're expecting $1.5 trillion in the Middle East. we're expecting $1.5 trillion in the middle east So particularly in Saudi, as we prepare for the 2030 Expo and for the 2034 World Cup, we're going to see tremendous tailwinds. so particularly in saudi as we prepare for the 2030 expo and for the 2034 world cup we're going to see tremendous tailwinds I would say the number two priority would be probably border security. i would say the number two priority would be probably border security Border security received about $160 billion within the reconciliation bill. border security received about $160 billion within the reconciliation bill Parsons has been involved in border security programs all over the world. parsons has been involved in border security programs all over the world We do work with Defense Threat Reduction Agency in countries like Jordan. we do work with defense threat reduction agency in countries like jordan We've done Armenia. we've done armenia We've done Georgia. we've done georgia We've done Lebanon. we've done lebanon We also do work with the Department of Energy for the Counter-Nuclear Smuggling Detection and Deterrence. we also do work with the department of energy for the counter-nuclear smuggling detection and deterrence That's a $1 billion ceiling contract, and there's only two awardees. that's a $1 billion ceiling contract and there's only two awardees And we've also done work at land ports of entry and along the southern border. and we've also done work at land ports of entry and along the southern border So that would probably be my second priority. Third, I would say would be the Golden Dome for America, in fact, in North America, not just the U.S., but also with Canada, where we have a big presence. As the Missile Defense Agency system engineering integration contractor, the big part of the Golden Dome effort initially is going to be on that integration piece. So we would anticipate use on our vehicle. Once again, we have a $1 billion ceiling remaining, and that vehicle runs until January 2029. We also are involved in non-kinetic effects, as I mentioned earlier, Cyber and Electronic Warfare. How do you take out a missile without using missile-to-missile system? We're participating on some of the space-based interceptor activity, and we're looking at the battle management, command, and control growth as well. Fourth area would be cyber. So that would probably be my second priority. so that would probably be my second priority Third, I would say would be the Golden Dome for America, in fact, in North America, not just the U.S., but also with Canada, where we have a big presence. third i would say would be the golden dome for america in fact in north america not just the u.s but also with canada where we have a big presence As the Missile Defense Agency system engineering integration contractor, the big part of the Golden Dome effort initially is going to be on that integration piece. as the missile defense agency system engineering integration contractor the big part of the golden dome effort initially is going to be on that integration piece So we would anticipate use on our vehicle. so we would anticipate use on our vehicle Once again, we have a $1 billion ceiling remaining, and that vehicle runs until January 2029. once again we have a $1 billion ceiling remaining and that vehicle runs until january 2029 We also are involved in non-kinetic effects, as I mentioned earlier, Cyber and Electronic Warfare. we also are involved in non-kinetic effects as i mentioned earlier cyber and electronic warfare How do you take out a missile without using missile-to-missile system? how do you take out a missile without using missile-to-missile system We're participating on some of the space-based interceptor activity, and we're looking at the battle management, command, and control growth as well. we're participating on some of the space-based interceptor activity and we're looking at the battle management command and control growth as well Fourth area would be cyber. fourth area would be cyber The National Security Strategy was just released by the Department of War, and one of the biggest effects, challenges, is still deterrence of China. That's really how we've purpose-built our federal company: how do we deter and outpace near-peer threats through cyber techniques, electronic warfare, signals intelligence, and information operations, and offensive cyber being a critical component of that, and it's hard, Brian, to be honest with you, to stop at force. I'm so excited about where the company is. The National Security Strategy was just released by the Department of War, and one of the biggest effects, challenges, is still deterrence of China. the national security strategy was just released by the department of war and one of the biggest effects challenges is still deterrence of china That's really how we've purpose-built our federal company: how do we deter and outpace near-peer threats through cyber techniques, electronic warfare, signals intelligence, and information operations, and offensive cyber being a critical component of that, and it's hard, Brian, to be honest with you, to stop at force. that's really how we've purpose-built our federal company how do we deter and outpace near-peer threats through cyber techniques electronic warfare signals intelligence and information operations and offensive cyber being a critical component of that and it's hard brian to be honest with you to stop at force I'm so excited about where the company is. i'm so excited about where the company is

Speaker 3: Don't let me stop you. You can go one deeper if you want. We have time for that. Don't let me stop you. don't let me stop you You can go one deeper if you want. you can go one deeper if you want We have time for that. we have time for that

Speaker 1: I would say another growth area that we're excited about would be PFOS/PFAS, emerging contaminant elimination. We see that as a $40 billion addressable market for the company out of a total market size of $220 billion. We've developed a technology. It's called the Hot ISCO technology that actually destroys the PFAS molecule on spot. That has now been patented in Canada and in the United States, and we've had our first deployments of the technology, and then I would highlight rebuild of Syria, Ukraine, and eventually Israel, Gaza, Syria being the first. Parsons is the company that did the Chemical Weapons Elimination, phase I. There's going to be a phase II of that, and then there will be the rebuild of Syria, and we anticipate that the Gulf Consortium countries are going to be the ones that are going to pay for that rebuild. I would say another growth area that we're excited about would be PFOS/PFAS, emerging contaminant elimination. i would say another growth area that we're excited about would be pfos/pfas emerging contaminant elimination We see that as a $40 billion addressable market for the company out of a total market size of $220 billion. we see that as a $40 billion addressable market for the company out of a total market size of $220 billion We've developed a technology. we've developed a technology It's called the Hot ISCO technology that actually destroys the PFAS molecule on spot. it's called the hot isco technology that actually destroys the pfas molecule on spot That has now been patented in Canada and in the United States, and we've had our first deployments of the technology, and then I would highlight rebuild of Syria, Ukraine, and eventually Israel, Gaza, Syria being the first. that has now been patented in canada and in the united states and we've had our first deployments of the technology and then i would highlight rebuild of syria ukraine and eventually israel gaza syria being the first Parsons is the company that did the Chemical Weapons Elimination, phase I. parsons is the company that did the chemical weapons elimination phase i There's going to be a phase II of that, and then there will be the rebuild of Syria, and we anticipate that the Gulf Consortium countries are going to be the ones that are going to pay for that rebuild. there's going to be a phase ii of that and then there will be the rebuild of syria and we anticipate that the gulf consortium countries are going to be the ones that are going to pay for that rebuild Obviously, with our extensive presence in the Middle East, that helps. And then two more quickly, but I would say Army munitions is another big area for us. We're currently present at Radford and Holston. Those are two of the five top Army ammunition plants within the United States. We've won four of four projects there, so expecting growth. And then the INDOPACOM region, the Pacific Deterrence Initiative was initially set up for $18 billion. Within the reconciliation bill, there's an additional $12 billion. We've been on that region for over three decades. So we do both infrastructure work as well as cyber, electronic warfare, and signals intelligence. So again, exciting time for the company with a lot of growth factors. Obviously, with our extensive presence in the Middle East, that helps. obviously with our extensive presence in the middle east that helps And then two more quickly, but I would say Army munitions is another big area for us. and then two more quickly but i would say army munitions is another big area for us We're currently present at Radford and Holston. we're currently present at radford and holston Those are two of the five top Army ammunition plants within the United States. those are two of the five top army ammunition plants within the united states We've won four of four projects there, so expecting growth. we've won four of four projects there so expecting growth And then the INDOPACOM region, the Pacific Deterrence Initiative was initially set up for $18 billion. and then the indopacom region the pacific deterrence initiative was initially set up for $18 billion Within the reconciliation bill, there's an additional $12 billion. within the reconciliation bill there's an additional $12 billion We've been on that region for over three decades. we've been on that region for over three decades So we do both infrastructure work as well as cyber, electronic warfare, and signals intelligence. so we do both infrastructure work as well as cyber electronic warfare and signals intelligence So again, exciting time for the company with a lot of growth factors. so again exciting time for the company with a lot of growth factors

Speaker 3: If I could just maybe pull on just one of the common threads here. When I was in D.C. a few weeks ago, a lot about border security, encounter UAS and that whole construct. And then just last week, the SHIELD contract was awarded for Golden Dome. Can you maybe help us understand how that matriculates through to contract awards and activity and how people should think about the timing for some of these things? If I could just maybe pull on just one of the common threads here. if i could just maybe pull on just one of the common threads here When I was in D.C. a few weeks ago, a lot about border security, encounter UAS and that whole construct. when i was in d.c a few weeks ago a lot about border security encounter uas and that whole construct And then just last week, the SHIELD contract was awarded for Golden Dome. and then just last week the shield contract was awarded for golden dome Can you maybe help us understand how that matriculates through to contract awards and activity and how people should think about the timing for some of these things? can you maybe help us understand how that matriculates through to contract awards and activity and how people should think about the timing for some of these things

Speaker 1: Yeah. I would say in Golden Dome first, again, I think there's going to be more systems procurement. So if you think about that, it's Patriots, ground-based interceptors, and a lot of integration going on. And then there's going to be an immediate focus sort of on local area defense. I would equate the local area defense to our Air Base Air Defense program that we have established in Europe, which is how we're protecting air force bases. It's kind of similar to how you might come in and protect a city from an architecture perspective. SHIELD was very broad. It has a $150 billion ceiling, over 1,000 awardees. It was more kind of broad-based capabilities. But I believe what's going to happen immediately is using existing contracts and getting existing work out. Yeah. yeah I would say in Golden Dome first, again, I think there's going to be more systems procurement. i would say in golden dome first again i think there's going to be more systems procurement So if you think about that, it's Patriots, ground-based interceptors, and a lot of integration going on. so if you think about that it's patriots ground-based interceptors and a lot of integration going on And then there's going to be an immediate focus sort of on local area defense. and then there's going to be an immediate focus sort of on local area defense I would equate the local area defense to our Air Base Air Defense program that we have established in Europe, which is how we're protecting air force bases. i would equate the local area defense to our air base air defense program that we have established in europe which is how we're protecting air force bases It's kind of similar to how you might come in and protect a city from an architecture perspective. it's kind of similar to how you might come in and protect a city from an architecture perspective SHIELD was very broad. shield was very broad It has a $150 billion ceiling, over 1,000 awardees. it has a $150 billion ceiling over 1,000 awardees It was more kind of broad-based capabilities. it was more kind of broad-based capabilities But I believe what's going to happen immediately is using existing contracts and getting existing work out. but i believe what's going to happen immediately is using existing contracts and getting existing work out

Speaker 3: Makes a lot of sense. I want to zoom into the President with a near-term question here. On the last call, you talked about some disruption from the government shutdown, but at the same time, you still guided an acceleration in your fourth quarter here coming up. Can you walk us through the components that are driving the sequential acceleration in your Federal Solutions segment and maybe if the length of the shutdown is causing that recovery to be a bit more elongated? Makes a lot of sense. makes a lot of sense I want to zoom into the President with a near-term question here. i want to zoom into the president with a near-term question here On the last call, you talked about some disruption from the government shutdown, but at the same time, you still guided an acceleration in your fourth quarter here coming up. on the last call you talked about some disruption from the government shutdown but at the same time you still guided an acceleration in your fourth quarter here coming up Can you walk us through the components that are driving the sequential acceleration in your Federal Solutions segment and maybe if the length of the shutdown is causing that recovery to be a bit more elongated? can you walk us through the components that are driving the sequential acceleration in your federal solutions segment and maybe if the length of the shutdown is causing that recovery to be a bit more elongated

Speaker 1: Yes. So first, again, 51% of our company doesn't fall under the federal government. We're only talking about the 49% that does. But I would say the growth that we were anticipating is sort of in three areas. The first one is the air base air defense contract that I just mentioned. We've been awarded some new task orders on that vehicle, so we're seeing growth there. Our Federal Aviation Administration contract, TSSC-5, without the brand new air traffic control system, was also accelerating throughout the fourth quarter. And then the last one is we were awaiting an award, which we received a success memo on. This one's kind of exciting because there were 100 offers on other transaction agreement. It was necked down to three prototypes, and we were awarded the Joint Cyber Hunt Kit program. Yes. yes So first, again, 51% of our company doesn't fall under the federal government. so first again 51% of our company doesn't fall under the federal government We're only talking about the 49% that does. we're only talking about the 49% that does But I would say the growth that we were anticipating is sort of in three areas. but i would say the growth that we were anticipating is sort of in three areas The first one is the air base air defense contract that I just mentioned. the first one is the air base air defense contract that i just mentioned We've been awarded some new task orders on that vehicle, so we're seeing growth there. we've been awarded some new task orders on that vehicle so we're seeing growth there Our Federal Aviation Administration contract, TSSC-5, without the brand new air traffic control system, was also accelerating throughout the fourth quarter. our federal aviation administration contract tssc-5 without the brand new air traffic control system was also accelerating throughout the fourth quarter And then the last one is we were awaiting an award, which we received a success memo on. and then the last one is we were awaiting an award which we received a success memo on This one's kind of exciting because there were 100 offers on other transaction agreement. this one's kind of exciting because there were 100 offers on other transaction agreement It was necked down to three prototypes, and we were awarded the Joint Cyber Hunt Kit program. it was necked down to three prototypes and we were awarded the joint cyber hunt kit program We're awaiting the LRIP contract, but that's a $500 million over a three-year product sale, so it's higher margins and it's accretive. So those are the critical elements within federal. As far as shutdown, we are glad it's over, and hopefully we don't have another one as we go into January 30th. We need to get the last nine bills passed. But I would say people are coming back to the office. It is a little bit slow still in terms of contracting actions, and we're very focused on collecting our cash. We're awaiting the LRIP contract, but that's a $500 million over a three-year product sale, so it's higher margins and it's accretive. we're awaiting the lrip contract but that's a $500 million over a three-year product sale so it's higher margins and it's accretive So those are the critical elements within federal. so those are the critical elements within federal As far as shutdown, we are glad it's over, and hopefully we don't have another one as we go into January 30th. as far as shutdown we are glad it's over and hopefully we don't have another one as we go into january 30th We need to get the last nine bills passed. we need to get the last nine bills passed But I would say people are coming back to the office. but i would say people are coming back to the office It is a little bit slow still in terms of contracting actions, and we're very focused on collecting our cash. it is a little bit slow still in terms of contracting actions and we're very focused on collecting our cash

Speaker 3: Right. We typically see cash slow down at this time of year for those situations. Let's maybe zoom now out, take the counterbalance to that question, and zoom out longer-term view. Remind the group of really what your growth algorithm is, organic versus inorganic, how much margin leverage you can realize as you scale up bigger, and really what the primary levers are to expand margins towards the top end of that peer group, which is 11% or 12% on an EBITDA basis. Right. right We typically see cash slow down at this time of year for those situations. we typically see cash slow down at this time of year for those situations Let's maybe zoom now out, take the counterbalance to that question, and zoom out longer-term view. let's maybe zoom now out take the counterbalance to that question and zoom out longer-term view Remind the group of really what your growth algorithm is, organic versus inorganic, how much margin leverage you can realize as you scale up bigger, and really what the primary levers are to expand margins towards the top end of that peer group, which is 11% or 12% on an EBITDA basis. remind the group of really what your growth algorithm is organic versus inorganic how much margin leverage you can realize as you scale up bigger and really what the primary levers are to expand margins towards the top end of that peer group which is 11% or 12% on an ebitda basis

Speaker 1: Yeah. So on the organic growth first, I would say, once again, we've been for three years consecutively the industry leader in organic growth in both of our segments, excluding the confidential contract. We have been very consistent as we go into 2026. We're going to grow mid-single digits or better. That doesn't include any big game changer opportunities that we might be awarded. That is strictly core business delivering, executing, as we have consistently done. Inorganically, we've bought 16 companies since 2017. This year, we acquired three companies, TRS Group in the first quarter that's focused on PFOS/PFAS and thermal remediation. We acquired Chesapeake Technology International, enhanced our cyber electronic warfare signal intelligence, but most importantly, has a great presence in the INDOPACOM region, also a great presence with Special Operations Command. Yeah. yeah So on the organic growth first, I would say, once again, we've been for three years consecutively the industry leader in organic growth in both of our segments, excluding the confidential contract. so on the organic growth first i would say once again we've been for three years consecutively the industry leader in organic growth in both of our segments excluding the confidential contract We have been very consistent as we go into 2026. we have been very consistent as we go into 2026 We're going to grow mid-single digits or better. we're going to grow mid-single digits or better That doesn't include any big game changer opportunities that we might be awarded. that doesn't include any big game changer opportunities that we might be awarded That is strictly core business delivering, executing, as we have consistently done. that is strictly core business delivering executing as we have consistently done Inorganically, we've bought 16 companies since 2017. inorganically we've bought 16 companies since 2017 This year, we acquired three companies, TRS Group in the first quarter that's focused on PFOS/PFAS and thermal remediation. this year we acquired three companies trs group in the first quarter that's focused on pfos/pfas and thermal remediation We acquired Chesapeake Technology International, enhanced our cyber electronic warfare signal intelligence, but most importantly, has a great presence in the INDOPACOM region, also a great presence with Special Operations Command. we acquired chesapeake technology international enhanced our cyber electronic warfare signal intelligence but most importantly has a great presence in the indopacom region also a great presence with special operations command Then most recently, Applied Sciences Consulting, and they're involved in water remediation efforts and heavy presence within Florida on resiliency. We expect to continue to do more M&A, although I will say with the stock dislocation, we are going to focus on share repurchases right now as well. But we have an active M&A pipeline, expect to be able to drive more organic growth. You can see us doing between two to four acquisitions in any given year. Margins. On margins, I would say our federal margins are kind of about where we would expect them to be based on a 60/40 split, which is cost reimbursable to fixed price T&M mix within there. Then most recently, Applied Sciences Consulting, and they're involved in water remediation efforts and heavy presence within Florida on resiliency. then most recently applied sciences consulting and they're involved in water remediation efforts and heavy presence within florida on resiliency We expect to continue to do more M&A, although I will say with the stock dislocation, we are going to focus on share repurchases right now as well. we expect to continue to do more m&a although i will say with the stock dislocation we are going to focus on share repurchases right now as well But we have an active M&A pipeline, expect to be able to drive more organic growth. but we have an active m&a pipeline expect to be able to drive more organic growth You can see us doing between two to four acquisitions in any given year. you can see us doing between two to four acquisitions in any given year Margins. margins On margins, I would say our federal margins are kind of about where we would expect them to be based on a 60/40 split, which is cost reimbursable to fixed price T&M mix within there. on margins i would say our federal margins are kind of about where we would expect them to be based on a 60/40 split which is cost reimbursable to fixed price t&m mix within there Where we will get margin growth on the federal side of the house is going to be through additional product sales, such as the earlier one that I mentioned on Joint Cyber Hunt Kit or the work that we're doing on assured position, navigation, and timing through our Globalstar partnership that we have. We would also get a lift through M&A because when we buy companies, we're buying companies that have greater than 10% EBITDA margin and also through operating leverage, where we've been able to control our costs as our revenues increase. Similarly, I'd say on the critical infrastructure side of the house, but I would add on the infrastructure side of the house, demand is so much greater than supply. So as you start to look at some of our new programs coming in, we have been able to get margin lift. Where we will get margin growth on the federal side of the house is going to be through additional product sales, such as the earlier one that I mentioned on Joint Cyber Hunt Kit or the work that we're doing on assured position, navigation, and timing through our Globalstar partnership that we have. where we will get margin growth on the federal side of the house is going to be through additional product sales such as the earlier one that i mentioned on joint cyber hunt kit or the work that we're doing on assured position navigation and timing through our globalstar partnership that we have We would also get a lift through M&A because when we buy companies, we're buying companies that have greater than 10% EBITDA margin and also through operating leverage, where we've been able to control our costs as our revenues increase. we would also get a lift through m&a because when we buy companies we're buying companies that have greater than 10% ebitda margin and also through operating leverage where we've been able to control our costs as our revenues increase Similarly, I'd say on the critical infrastructure side of the house, but I would add on the infrastructure side of the house, demand is so much greater than supply. similarly i'd say on the critical infrastructure side of the house but i would add on the infrastructure side of the house demand is so much greater than supply So as you start to look at some of our new programs coming in, we have been able to get margin lift. so as you start to look at some of our new programs coming in we have been able to get margin lift We have lifted our margins overall as a company 50 basis points last year and additional 50 basis points this year, and really happy with the critical infrastructure business, which has delivered over 10% margins for three consecutive quarters through outstanding performance execution. We have lifted our margins overall as a company 50 basis points last year and additional 50 basis points this year, and really happy with the critical infrastructure business, which has delivered over 10% margins for three consecutive quarters through outstanding performance execution. we have lifted our margins overall as a company 50 basis points last year and additional 50 basis points this year and really happy with the critical infrastructure business which has delivered over 10% margins for three consecutive quarters through outstanding performance execution

Speaker 3: You've done a really nice job on that critical infrastructure piece. Maybe let's pivot to that business a little bit, not only the margin execution, but the growth rate's been mid-teens. You've 20 consecutive book-to-bills greater than one. Maybe talk about the durability of this cycle. It sounds like it's a very elongated cycle with years in front of it still. And then maybe where you're seeing the biggest pockets of activity, whether it's transportation, water, and then maybe give us a regional flavor for where things are coming, either Middle East or North America or how you're looking at it. You've done a really nice job on that critical infrastructure piece. you've done a really nice job on that critical infrastructure piece Maybe let's pivot to that business a little bit, not only the margin execution, but the growth rate's been mid-teens. maybe let's pivot to that business a little bit not only the margin execution but the growth rate's been mid-teens You've 20 consecutive book-to-bills greater than one. you've 20 consecutive book-to-bills greater than one Maybe talk about the durability of this cycle. maybe talk about the durability of this cycle It sounds like it's a very elongated cycle with years in front of it still. it sounds like it's a very elongated cycle with years in front of it still And then maybe where you're seeing the biggest pockets of activity, whether it's transportation, water, and then maybe give us a regional flavor for where things are coming, either Middle East or North America or how you're looking at it. and then maybe where you're seeing the biggest pockets of activity whether it's transportation water and then maybe give us a regional flavor for where things are coming either middle east or north america or how you're looking at it

Speaker 1: Yes. So I'd say first at the company level, we're really proud of the fact that we've been greater than 1.0, trailing 12-month book to bill since we IPO'd back in May of 2019. And as you point out, 20 consecutive quarters greater than 1.0 within critical infrastructure. Demand is really across the board. Additionally, you know, as we saw a shift within the United States back to what I'm going to call hard infrastructure, away from areas like climate change, electrification, broadband, where Parsons does not play, back to a refocus on roads and highways, airports, bridges. Those are the areas that we're involved in, rail and transit. So that kind of plays to our strength, and that's where the money has been going. In the Middle East, we're going to see a lot of long-tailwinds. Yes. yes So I'd say first at the company level, we're really proud of the fact that we've been greater than 1.0, trailing 12-month book to bill since we IPO'd back in May of 2019. so i'd say first at the company level we're really proud of the fact that we've been greater than 1.0 trailing 12-month book to bill since we ipo'd back in may of 2019 And as you point out, 20 consecutive quarters greater than 1.0 within critical infrastructure. and as you point out 20 consecutive quarters greater than 1.0 within critical infrastructure Demand is really across the board. demand is really across the board Additionally, you know, as we saw a shift within the United States back to what I'm going to call hard infrastructure, away from areas like climate change, electrification, broadband, where Parsons does not play, back to a refocus on roads and highways, airports, bridges. additionally you know as we saw a shift within the united states back to what i'm going to call hard infrastructure away from areas like climate change electrification broadband where parsons does not play back to a refocus on roads and highways airports bridges Those are the areas that we're involved in, rail and transit. those are the areas that we're involved in rail and transit So that kind of plays to our strength, and that's where the money has been going. so that kind of plays to our strength and that's where the money has been going In the Middle East, we're going to see a lot of long-tailwinds . in the middle east we're going to see a lot of long-tailwinds The important thing right now is to get ready for the 2030 Expo in Saudi, the 2034 World Cup that's going to occur. We've been heavily focused on programs that are around Riyadh because they're going to be on the world stage, and those programs have to get done first. So as any reprioritization, whether it occur in Saudi, you're still going to deliver on those programs. So if you think about Diriyah Gate, restoration of Saudi's history, King Salman Park, five times the size of Central Park, Qiddiya, the world's largest entertainment city. We were just awarded King Salman International Airport, where we're going to have 108 million passengers by 2030, same size as Atlanta, the world's busiest airport, 150 million passengers by 2050, will be the world's largest airport. The important thing right now is to get ready for the 2030 Expo in Saudi, the 2034 World Cup that's going to occur. the important thing right now is to get ready for the 2030 expo in saudi the 2034 world cup that's going to occur We've been heavily focused on programs that are around Riyadh because they're going to be on the world stage, and those programs have to get done first. we've been heavily focused on programs that are around riyadh because they're going to be on the world stage and those programs have to get done first So as any reprioritization, whether it occur in Saudi, you're still going to deliver on those programs. so as any reprioritization whether it occur in saudi you're still going to deliver on those programs So if you think about Diriyah Gate, restoration of Saudi's history, King Salman Park, five times the size of Central Park, Qiddiya, the world's largest entertainment city. so if you think about diriyah gate restoration of saudi's history king salman park five times the size of central park qiddiya the world's largest entertainment city We were just awarded King Salman International Airport, where we're going to have 108 million passengers by 2030, same size as Atlanta, the world's busiest airport, 150 million passengers by 2050, will be the world's largest airport. we were just awarded king salman international airport where we're going to have 108 million passengers by 2030 same size as atlanta the world's busiest airport 150 million passengers by 2050 will be the world's largest airport We did the Metro project, which is still underway, quite a success done in a very short period of time. We were just awarded the traffic management that's around Riyadh. So it's our first deployment of our advanced traffic management system within the Middle East, quite exciting. So I would say that's the significant growth we're seeing there. But not to leave out the UAE and Qatar because we're growing double digits within all three countries. In the UAE, we're seeing a lot of development. There are a lot of people moving there. So we're actually building manmade islands, you know, for people to live on and designing a lot of new mixed-use development areas. And then within Qatar, we've been very busy, not just in Doha, but also in the city of Lusail, which is going to be focusing more on tourism and entertainment. We did the Metro project, which is still underway, quite a success done in a very short period of time. we did the metro project which is still underway quite a success done in a very short period of time We were just awarded the traffic management that's around Riyadh. we were just awarded the traffic management that's around riyadh So it's our first deployment of our advanced traffic management system within the Middle East, quite exciting. so it's our first deployment of our advanced traffic management system within the middle east quite exciting So I would say that's the significant growth we're seeing there. so i would say that's the significant growth we're seeing there But not to leave out the UAE and Qatar because we're growing double digits within all three countries. but not to leave out the uae and qatar because we're growing double digits within all three countries In the UAE, we're seeing a lot of development. in the uae we're seeing a lot of development There are a lot of people moving there. there are a lot of people moving there So we're actually building manmade islands, you know, for people to live on and designing a lot of new mixed-use development areas. so we're actually building manmade islands you know for people to live on and designing a lot of new mixed-use development areas And then within Qatar, we've been very busy, not just in Doha, but also in the city of Lusail, which is going to be focusing more on tourism and entertainment. and then within qatar we've been very busy not just in doha but also in the city of lusail which is going to be focusing more on tourism and entertainment We've diversified within the Middle East too. So, you know, traditionally, we've done transportation projects and Urban Development. We were awarded a project with the Ministry of Defense. It's a critical infrastructure project within Saudi. We also were awarded a border security project within Saudi Arabia, again, strengthening our border security credentials. And then finally, we were awarded a project in tourism and hospitality to convert some palaces to hotels. We've diversified within the Middle East too. we've diversified within the middle east too So, you know, traditionally, we've done transportation projects and Urban Development. so you know traditionally we've done transportation projects and urban development We were awarded a project with the Ministry of Defense. we were awarded a project with the ministry of defense It's a critical infrastructure project within Saudi. it's a critical infrastructure project within saudi We also were awarded a border security project within Saudi Arabia, again, strengthening our border security credentials. we also were awarded a border security project within saudi arabia again strengthening our border security credentials And then finally, we were awarded a project in tourism and hospitality to convert some palaces to hotels. and then finally we were awarded a project in tourism and hospitality to convert some palaces to hotels

Speaker 3: A lot going on in the Middle East, definitely. Let's maybe, I think you teased it a little bit, but let's talk about capital allocation. I think your leverage is about 1.4 x. You've done kind of a few deals each year, two to four or so. They've been reasonably sized. How are we thinking about, you mentioned the stock dislocation. How are we looking at maybe two things? One, what the pipeline looks like from an M&A perspective. Is there a leaning towards one segment or the other where you would do more deals? And then third, how are you now balancing a potential stock buyback going forward? A lot going on in the Middle East, definitely. a lot going on in the middle east definitely Let's maybe, I think you teased it a little bit, but let's talk about capital allocation. let's maybe i think you teased it a little bit but let's talk about capital allocation I think your leverage is about 1.4 x. i think your leverage is about 1.4 x You've done kind of a few deals each year, two to four or so. you've done kind of a few deals each year two to four or so They've been reasonably sized. they've been reasonably sized How are we thinking about, you mentioned the stock dislocation. how are we thinking about you mentioned the stock dislocation How are we looking at maybe two things? how are we looking at maybe two things One, what the pipeline looks like from an M&A perspective. one what the pipeline looks like from an m&a perspective Is there a leaning towards one segment or the other where you would do more deals? is there a leaning towards one segment or the other where you would do more deals And then third, how are you now balancing a potential stock buyback going forward? and then third how are you now balancing a potential stock buyback going forward

Speaker 1: Yes. I'll take the second part first. We are authorized by the board for $250 million. As of the end of the third quarter, we had $185 million remaining in share repurchase. We do plan to be more active as we go into the fourth quarter, given the stock dislocation. On the second question, we have an excellent pipeline. I was hoping to close four deals this year, but stay tuned. And I would say we've got opportunities on both the federal and the critical infrastructure side of the house. Four of our last six deals were on the critical infrastructure side of the house, but I still like a lot of the federal deals because they're high technology, and we can take that technology and we can apply it across the business. Yes. yes I'll take the second part first. i'll take the second part first We are authorized by the board for $250 million. we are authorized by the board for $250 million As of the end of the third quarter, we had $185 million remaining in share repurchase. as of the end of the third quarter we had $185 million remaining in share repurchase We do plan to be more active as we go into the fourth quarter, given the stock dislocation. we do plan to be more active as we go into the fourth quarter given the stock dislocation On the second question, we have an excellent pipeline. on the second question we have an excellent pipeline I was hoping to close four deals this year, but stay tuned. i was hoping to close four deals this year but stay tuned And I would say we've got opportunities on both the federal and the critical infrastructure side of the house. and i would say we've got opportunities on both the federal and the critical infrastructure side of the house Four of our last six deals were on the critical infrastructure side of the house, but I still like a lot of the federal deals because they're high technology, and we can take that technology and we can apply it across the business. four of our last six deals were on the critical infrastructure side of the house but i still like a lot of the federal deals because they're high technology and we can take that technology and we can apply it across the business So you can expect to see us likely do a deal that is still in kind of that cyber EW signals and intelligence area that expands our presence with the intelligence community. So you can expect to see us likely do a deal that is still in kind of that cyber EW signals and intelligence area that expands our presence with the intelligence community. so you can expect to see us likely do a deal that is still in kind of that cyber ew signals and intelligence area that expands our presence with the intelligence community

Speaker 3: Great areas to be in. Carey, you know this is your moment to shine here, the drop-the-mic moment. So go ahead, no follow-up from me. Talk directly to investors here and on the internet and tell them why they should consider Parsons as an investment. Great areas to be in. great areas to be in Carey, you know this is your moment to shine here, the drop-the-mic moment. carey you know this is your moment to shine here the drop-the-mic moment So go ahead, no follow-up from me. so go ahead no follow-up from me Talk directly to investors here and on the internet and tell them why they should consider Parsons as an investment. talk directly to investors here and on the internet and tell them why they should consider parsons as an investment

Speaker 1: But I'll miss the follow-up for you. So I would say why you should consider Parsons as an investment. Again, we have been the leading industry organic growth driver for the last three years, excluding the confidential contract. That's in both segments. We have strong tailwinds across the business. I highlighted all of our growth areas within North America and the federal side with the One Big Beautiful Reconciliation Bill, where we are very much aligned to all the elements that got funded there, whether it's border security, Golden Dome for America, INDOPACOM, Army munitions, et cetera. Within the infrastructure side of the house in North America, very well aligned to the hard infrastructure where the money's going to be spent under the IIJA, as well as the next five-year Surface Transportation Reauthorization Bill. But I'll miss the follow-up for you. but i'll miss the follow-up for you So I would say why you should consider Parsons as an investment. so i would say why you should consider parsons as an investment Again, we have been the leading industry organic growth driver for the last three years, excluding the confidential contract. again we have been the leading industry organic growth driver for the last three years excluding the confidential contract That's in both segments. that's in both segments We have strong tailwinds across the business. we have strong tailwinds across the business I highlighted all of our growth areas within North America and the federal side with the One Big Beautiful Reconciliation Bill, where we are very much aligned to all the elements that got funded there, whether it's border security, Golden Dome for America, INDOPACOM, Army munitions, et cetera. i highlighted all of our growth areas within north america and the federal side with the one big beautiful reconciliation bill where we are very much aligned to all the elements that got funded there whether it's border security golden dome for america indopacom army munitions et cetera Within the infrastructure side of the house in North America, very well aligned to the hard infrastructure where the money's going to be spent under the IIJA, as well as the next five-year Surface Transportation Reauthorization Bill. within the infrastructure side of the house in north america very well aligned to the hard infrastructure where the money's going to be spent under the iija as well as the next five-year surface transportation reauthorization bill Within the Middle East, I just talked about it, but very exciting times there. That's going to go on for decades of growth. Really proud of our presence that we've had over there for 65 years, a 50-year partnership with our Saudi Arabia partner. Margin expansion, we've been consistent, you know, 50 basis points last year, 50 basis points this year, another 10-20 anticipated as we go into next year. Book to bill, the company over 1.0, trailing 12 months since IPO, critical infrastructure greater than 1.0, 20 consecutive quarters. Biggest pipeline we've ever had in the company, $58 billion. We've moved up the value chain, as we said, as a solutions integrator. We're differentiating with software. We're in a position now that we can bid prime and win larger projects. Then I'd highlight our consistent cash flow over the last couple of years, 115%-120%. Within the Middle East, I just talked about it, but very exciting times there. within the middle east i just talked about it but very exciting times there That's going to go on for decades of growth. that's going to go on for decades of growth Really proud of our presence that we've had over there for 65 years, a 50-year partnership with our Saudi Arabia partner. really proud of our presence that we've had over there for 65 years a 50-year partnership with our saudi arabia partner Margin expansion, we've been consistent, you know, 50 basis points last year, 50 basis points this year, another 10- 20 anticipated as we go into next year. margin expansion we've been consistent you know 50 basis points last year 50 basis points this year another 10- 20 anticipated as we go into next year Book to bill, the company over 1.0, trailing 12 months since IPO, critical infrastructure greater than 1.0, 20 consecutive quarters. book to bill the company over 1.0 trailing 12 months since ipo critical infrastructure greater than 1.0 20 consecutive quarters Biggest pipeline we've ever had in the company, $58 billion. biggest pipeline we've ever had in the company $58 billion We've moved up the value chain, as we said, as a solutions integrator. we've moved up the value chain as we said as a solutions integrator We're differentiating with software. we're differentiating with software We're in a position now that we can bid prime and win larger projects. we're in a position now that we can bid prime and win larger projects Then I'd highlight our consistent cash flow over the last couple of years, 115%-120%. then i'd highlight our consistent cash flow over the last couple of years 115%-120% So very consistent and great capital deployment. I think M&A has really helped us move up that value chain and definitely transformed our company. So exciting time at Parsons. So very consistent and great capital deployment. so very consistent and great capital deployment I think M&A has really helped us move up that value chain and definitely transformed our company. i think m&a has really helped us move up that value chain and definitely transformed our company So exciting time at Parsons. so exciting time at parsons

Speaker 3: Sounds great. Well said, Carey. Thank you so much for joining us today. Sounds great. sounds great Well said, Carey. well said carey Thank you so much for joining us today. thank you so much for joining us today

Speaker 1: Thanks. Thanks. thanks

Speaker 3: And thanks everyone out there for your interest. We do have time for a question or two if anyone has one in the audience. Yeah, please. And thanks everyone out there for your interest. and thanks everyone out there for your interest We do have time for a question or two if anyone has one in the audience. we do have time for a question or two if anyone has one in the audience Yeah, please. yeah please Can I just ask about, you mentioned about the PFAS. Can you just give a bit more color of maybe the opportunity there and the role you can play in it, and some of your peers have spoken about this. It's maybe a case of a political decision in terms of a fund needing to be raised because it's such an expensive problem, and how do you see that? Can I just ask about, you mentioned about the PFAS. can i just ask about you mentioned about the pfas Can you just give a bit more color of maybe the opportunity there and the role you can play in it, and some of your peers have spoken about this. can you just give a bit more color of maybe the opportunity there and the role you can play in it and some of your peers have spoken about this It's maybe a case of a political decision in terms of a fund needing to be raised because it's such an expensive problem, and how do you see that? it's maybe a case of a political decision in terms of a fund needing to be raised because it's such an expensive problem and how do you see that

Speaker 1: Sure. So within PFOS/PFAS, we've had a research laboratory in Syracuse, New York, for three decades that we've been focused on, you know, improving. I'm going to say, quality of water, quality of soil. We hold several patents within the PFOS/PFAS area. The most important one is the Hot ISCO technology, which we have deployed. It basically breaks the PFAS molecule on site without requiring incineration. We see this as a $40 billion addressable market for Parsons out of a total $220 billion market. On the critical infrastructure side of the house, we will sell to airports, we'll sell to industrial customers, and also water customers. And then on the federal side of the house, we'll sell to the Federal Aviation Administration and the Department of Defense. On both sides of the house, we already have contracts in place, master service agreements, or indefinite delivery, indefinite quantity vehicles. Sure. sure So within PFOS/PFAS, we've had a research laboratory in Syracuse, New York, for three decades that we've been focused on, you know, improving. so within pfos/pfas we've had a research laboratory in syracuse new york for three decades that we've been focused on you know improving I'm going to say, quality of water, quality of soil. i'm going to say quality of water quality of soil We hold several patents within the PFOS/PFAS area. we hold several patents within the pfos/pfas area The most important one is the Hot I SCO technology, which we have deployed. the most important one is the hot i sco technology which we have deployed It basically breaks the PFAS molecule on site without requiring incineration. it basically breaks the pfas molecule on site without requiring incineration We see this as a $40 billion addressable market for Parsons out of a total $220 billion market. we see this as a $40 billion addressable market for parsons out of a total $220 billion market On the critical infrastructure side of the house, we will sell to airports, we'll sell to industrial customers, and also water customers. on the critical infrastructure side of the house we will sell to airports we'll sell to industrial customers and also water customers And then on the federal side of the house, we'll sell to the Federal Aviation Administration and the Department of Defense. and then on the federal side of the house we'll sell to the federal aviation administration and the department of defense On both sides of the house, we already have contracts in place, master service agreements, or indefinite delivery, indefinite quantity vehicles. on both sides of the house we already have contracts in place master service agreements or indefinite delivery indefinite quantity vehicles We're involved in every aspect of the life cycle. So we do investigations. We've done over 2,000 investigations and over 7,000 point-of-use investigations. Then we can come in and we can do the remediation and treatment and also the follow-on monitoring and support. The federal MCO levels have not been changed. They're still at a consistent level. What has happened is a timeline for implementation from the federal government has been stretched. We always felt that it was going to be elongated. So we always indicated 2032 is our expectation for a peak in that market. In addition to the federal, you also have 34 states that have their own regulations. So we see this as an exciting area for the company. Thank you. We're involved in every aspect of the life cycle. we're involved in every aspect of the life cycle So we do investigations. so we do investigations We've done over 2,000 investigations and over 7,000 point-of-use investigations. we've done over 2,000 investigations and over 7,000 point-of-use investigations Then we can come in and we can do the remediation and treatment and also the follow-on monitoring and support. then we can come in and we can do the remediation and treatment and also the follow-on monitoring and support The federal MCO levels have not been changed. the federal mco levels have not been changed They're still at a consistent level. they're still at a consistent level What has happened is a timeline for implementation from the federal government has been stretched. what has happened is a timeline for implementation from the federal government has been stretched We always felt that it was going to be elongated. we always felt that it was going to be elongated So we always indicated 2032 is our expectation for a peak in that market. so we always indicated 2032 is our expectation for a peak in that market In addition to the federal, you also have 34 states that have their own regulations. in addition to the federal you also have 34 states that have their own regulations So we see this as an exciting area for the company. so we see this as an exciting area for the company Thank you. thank you

Speaker 3: Great. Carey, thanks so much. Great. great Carey, thanks so much. carey thanks so much

Speaker 1: Thanks, Brian. Thanks, Brian. thanks brian

Speaker 3: Thanks so much. Thanks so much. thanks so much